Cougar Company Is Trying to Decide Which Product to Manufacture

question 89

Multiple Choice

Cougar Company is trying to decide which product to manufacture.Expected direct materials costs are $4 for each product.In choosing between the two products,the direct materials costs are ________.

• A)relevant because it is an expected future cost
• B)relevant because it is a product cost
• C)irrelevant because it is an estimated cost
• D)irrelevant because it does not differ between the two alternatives

---

Definitions:

Received

The action of obtaining or accepting something, such as goods, payments, or services.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting that does not necessarily align with the calendar year.

Transactions

The exchange or transfer of goods, services, or funds between two or more parties.